Nifty 500 VS Nifty 500 Multicap 50:25:25

[Parul Mahajan-1744546104036]

@Prashant-Shah Sir, could you please help me understand why the same strategy with identical parameters yields different results when backtested on the Nifty 500 versus the Nifty 500 Multicap 50:25:25 index?

[prashant.shah26@gmail.com]

Nifty 500 is survivorship bias free. It considers past data as well.
Nifty Multi-cap considers current group for backtesting.

Nifty 500 backtesting data should be considered. You can run live strategy on Nifty Multi-cap group as well.

[Gautam Heble-1756230857752]

@Prashant-Shah thanks for the clarification.

Since all the different groups and indices are available for backtesting, Please could the team do 1 of the below options

• allow only the groups which are free of survivorship bias for backtesting
• share a list of all the groups which are free of survivorship bias

This will help members backtest on correct data, otherwise they will be misled by the results.